Karen Co. began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors: Dec 31, 2020 Dec 31, 2021 $123,500 overstated $81.500 overstated Ending inventory Depreciation expense Accumulated depreciation 49.500 understated 49,500 understated 49.500 understated Insurance expense 44,000 overstated 44,000 understated Prepaid expense 44,000 understated In addition, on December 26, 2021 fully depreciated equipment was sold for $54,000, but the sale was not recorded until 2022. No corrections have been made for any of the errors. Ignoring income taxes, show your calculation of the total effect of the errors on 2021 net income. $ Total effect of the errors on 2021 net income